CBDT extends due date for personal Income Tax Return filing for tax year 2024-25 from 31 July 2025 to 15 September 2025

Background:

The Central Board of Direct Taxes (CBDT)^[1]  has notified ^[2]  revised Income Tax Return (ITR) Forms 1 to 7 for the tax year ^[3]  2024-25 to simplify the compliance and enhance transparency. Key changes include (a) allowing salaried individuals and small business owners with long-term capital gains up to INR 1,25,000 to use simpler Form ITR-1 or ITR-4; (b) revising capital gains schedule to give effect to changes in tax rates effective from 23 July 2024; and (c) treating gains from unlisted bonds and debentures as short-term capital gains (STCGs) effective from 23 July 2024. Additionally, the new ITR forms mandate specifying TDS section codes, remove Aadhaar Enrolment ID usage, etc.

Press release:

The CBDT has recently released a press release dated 27 May 2025 providing for extension of due date for filing return of income. The CBDT provides the following reasons which were considered necessary for the extension of due date:

• There has been substantial structural and content revision in the notified ITR forms, requiring additional time for system development, integration and testing of filing utilities. 
• Additionally, due to reflection of TDS credits from statements due by 31 May 2025, only in early June, resulting in constrains in the filing window in absence of extension. 

Given the above reasons, with an aim to facilitate a smooth and accurate filing, as well as to address stakeholder concerns and ensure compliance without undue pressure on taxpayers, the CBDT has now extended the due date for filing ITRs for tax year 2024-25 from 31 July 2025 to 15 September 2025. This extension is relevant for taxpayers covered by clause (c) of Explanation 2 to Section 139(1) of the Income-tax Act 1961 (ITA) – viz. individuals, HUF and partnership firms not covered by tax audit requirements.

A formal notification in this respect is still awaited.

Comments:

This is a welcome move, allowing the taxpayers sufficient time to meet enhanced reporting requirements amid recent tax law amendments. Unlike in the recent past, when the said forms were typically released well in advance, typically in February or March prior to the end of the tax year, this year, the ITR forms were released belatedly. This had led to the expectation from taxpayers that the department may need to extend the deadline for filing income tax returns. On other hand, even for tax department, the extension is viewed as a necessity for allowing the requisite time to update the utilities, given the changed taxation rules and tax rates.

There are various compliances under the ITA which are linked to the due date of filing return of income under Section 139(1), such as capital gains exemptions under Sections 54 and 54EC, filing Form 10-IEA to opt out of the new tax regime under Section 115BAC, and deductions under Chapter VI-A etc. which are likely to now consequently be extended to 15 September 2025. Even no interest under Section 234A may be leviable and losses, if any, will also be allowed to be carried forward if tax return is filed by the extended due date. However, one may await the fine print of the Notification before adopting any view in this respect.

^[1] The apex body for administration of direct taxes in India
^[2] Refer various notifications issued by the CBDT on various dates starting from Notification No. 40/2025 dated 29 April 2025 till Notification No. 46/2025 dated 9 May 2025.
^[3] The period beginning from 1 April of one calendar year and ending on 31 March of the immediately subsequent calendar year.